Shelf life planning on SAP Integrated Business Planning Deloitte and SAP co innovation
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1 Shelf life planning on SAP Integrated Business Planning Deloitte and SAP co innovation
2 Deloitte s approach to tackle shelf life planning on SAP IBP Shelf life planning solution addresses the challenge of considering expiring batch stock in demand shaping, supply and financial planning. Who is affected What is the challenge What is the value Demand Finance Lack of out of shelf life batch inventory visibility for sales & demand managers. Missing information on product batch shelf life, resulting in a low anticipation and suboptimal resource allocation and unnecessary write offs. Lack of vision on impact of shelf life related write offs, causing misalignment between S&OP and financial plan. Identify when and which batches will expire to help to shape demand, to avoid write offs and ensure sales. Identify and include planned out of shelf life batches in supply and replenishment planning cross the global network. Anticipate financial provisions for potential write offs linked to shelf life. Improve integration of financial and volumetric planning. Key industries Chemicals Food Beverages Pharmaceuticals FMCG Process flow for the shelf life functionality co developed by Deloitte and SAP Target user(s)
3 Hey, I m a supply, and that s how I m monitoring my global inventory Monitoring the current and future inventory situation is very easy with role based dashboards and analytics. Each user can tailor it to their own needs. Inventory per region How can I monitor inventory globally and see the future projections for expiring stock? Seems like I have here everything I need! On hand inventory Projected stock
4 Being alerted about my expiring stock... IBP Chain Control Tower allows setting up alerts: the stock running out of shelf life will trigger an alert, giving thus some time to take proactive action. Detailed charts for each alert Oh, I have several batches about to expire soon: I need to avoid write offs! Tailored alerts for stock running out of shelf life Follow up actions
5 Letting my demand manager know about out of shelf life risk Investigational cases allow to collaborate, gather information and manage actions for resolving issues. For instance, in addition to the case owner and deadline, a specific user can be assigned to a task; this user will immediately be notified by with the direct link to the case details. Let s involve the team: I will ask my regional demand manager, maybe she can help selling them before it s too late! 1. Create the case, set a deadline and priority 2. Assign a team member to take care of the case 3. The will be automatically generated with the link to the case Demand manager
6 Checking my exceptions details Assessment of shelf life planning issues is done in an exception based manner in the main SAP IBP Excel user interface, while its configuration is done in SAP HANA through the web browser. Alerts are categorized so that users get fast and precise notifications in the planning screen. I need to re plan my supply and distribution, but I can t go through all SKUs. Great, there are tailored alerts in the planning view! Excel UI dashboard summarizes number of alerts triggered Details of each alert are shown and the link to the corresponding view is embedded
7 Analyzing my inventory shelf life on a batch level The shelf life planning screen helps the supply to assess exceptions, which highlight the projected stock running out of shelf life on batch level. Projected calculation of auxiliary inventory Now I see the details on plant/ product/batch level. Good, I also notice the red marked batches with the corresponding latest shipment and expiry dates. Batch level stock details
8 Checking results of my re planning The inventory on product level is corrected to take into account all batches that have run out of shelf life. This way, the net demand can be recalculated and the supply quantity balanced accordingly. Quantity correction for expiring batches I have my supply re calculated considering out of shelf life batches. Ok, I ve managed to better balance real supply and demand! Well done to myself! Net demand quantity after re planning
9 And finally letting my finance manager go over the numbers Financial provisions for expiring batches Aha! Finally I can see how much will cost the inventory write offs and plan provisions accordingly. Sounds brilliant! Finance manager
10 Your direct contacts Constantin Hellweg Germany Walldorf Ganesh Manikandan Sankaran Germany Walldorf Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ( DTTL ), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as Deloitte Global ) does not provide services to clients. Please see for a more detailed description of DTTL and its member firms. Deloitte provides audit, risk advisory, tax, financial advisory and consulting services to public and private clients spanning multiple industries; legal advisory services in Germany are provided by Deloitte Legal. With a globally connected network of member firms in more than 150 countries, Deloitte brings world class capabilities and high quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte s more than 244,000 professionals are committed to making an impact that matters. This presentation is for internal distribution and use only among personnel of Deloitte Touche Tohmatsu Limited, its member firms and their related entities (collectively, the Deloitte network ). None of the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication Deloitte Consulting GmbH J11516
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